Commodities
Australia Plans New Local Oil Refinery
The Australian government will allocate AU$4 million ($2.79 million) for a pre-feasibility study on a large-scale oil refinery, which could be the country's third facility and its first in more than 60 years, according to a statement from the Albanese and Cook Labor governments on Tuesday.The proposed refinery in Western Australia will enhance energy security and cushion the impact of supply shocks, such as the one caused by the recent disruptions in the Strait of Hormuz. Australia imports around 80% of its fuel needs, according to Reuters.Following the closure of several domestic oil refineries, which were mostly built in the 1960s, only Ampol's Lytton refinery in Brisbane, Queensland and Viva Energy's facility in Geelong, Victoria remain operational.The new project study is the first agreement under the Albanese government's AU$10 million support for feasibility studies to expand fuel refining capabilities, the statement said. It is also part of the AU$15 billion federal government fund for energy security.Industrial developer Perdaman will construct the project, once finalized.Prime Minister Anthony Albanese and WA Premier Roger Cook announced the proposed oil refinery while visiting Perdaman's urea plant in Karratha.Opposition members of Parliament also supported the plan, but noted potential challenges, including the current carbon tax imposed on refineries, Australian media outlet News24 reported.
